Most businesses borrow money for bo

Most businesses borrow money for both long-term periods (periods of more than one year) and short-term periods (periods of one year or less). Long-term debt can include a 5-year car loan, 20-year mortgage, or any other type of debt that is paid over more than one year.
Most companies take on some form of long-term debt, such as car loans, mortgages, or promissory notes. A promissory note is a written agreement where you agree to repay someone a set amount of money at some point in the future at a particular interest rate. It can be monthly, yearly, or some other term specified in the note. Most installment loans are types of promissory notes.